The Bitcoin mining difficulty reached an all-time high of 127.6 trillion this week, with a projected decline of approximately 3% to 123.7 trillion expected on August 9. Current average block time stands at about 10 minutes and 20 seconds. Data indicates a significant drop in difficulty by the end of the month and into July, where it fell to 116.9 trillion before resuming an upward trend. Mining difficulty is crucial for miner profitability and helps maintain Bitcoin's value, as it safeguards against overproduction. The stock-to-flow ratio, which measures the available supply against new supply, plays a role in this dynamic. Bitcoin's stock-to-flow ratio is higher than gold's, indicating greater scarcity. As computation power increases, the difficulty rises to keep block production steady, whereas a decrease in computing power leads to a reduction in difficulty, ensuring a steady mining pace.

Source đź”—